75% of India's GDP Black Money, Says NIPFP Report

PUBLISHED BY: SURENDER KUMARAUGUST 05, 2014

75% of India\'s GDP Black Money, Says NIPFP Report

The black economy in India could possibly be 75% of its reported Gross Domestic Product (GDP). The parallel economy has been propelled substantially by higher education, real estate and mining income, says a confidential report submitted by the National Institute of Public Finance and Policy (NIPFP) to estimate the black money in India and overseas. The capitation fees charged by private colleges on management quota seats last year alone amounted to Re. 5,953 crore, the report estimates.

The Special Investigation Team, constituted by the Narendra Modi government on in compliance with a Supreme Court directive, is studying the said report. Though the report was submitted to the Finance Ministry in December 2013, neither P. Chidambaram nor his successor Arun Jaitley palced it in Parliament.